It is cheaper to produce corn in Kansas than in Death Valley, California, because corn needs a lot of water and moderate temperatures. This statement best represents this economic concept:
A)Resources are scarce.
B)Markets move toward equilibrium.
C)Resources should be used as efficiently as possible to achieve society's goals.
D)Markets usually lead to efficiency.

Question

Quizplus · Accepted Answer

This statement represents the economic concept of using resources efficiently to achieve society's goals by producing corn in a region where it can be grown at a lower cost due to the availability of suitable resources. This concept is closely related to the concept of comparative advantage, where regions or countries specialize in the production of goods where they have a relative advantage in terms of resources, labor, or technology.

It Is Cheaper to Produce Corn in Kansas Than in Death